SandRidge, Advantage agree to deploy gas-to-liquids tech

SandRidge Energy Inc. will deploy a gas-to-liquids technology in the Niobrara shale play of Colorado after agreeing with Dallas-based Advantage Midstream. The Dallas company has created a unique process that converts various sources—natural gas, ethane, flare gas or CO2—into syngas. The synthetic gas is then converted into ultra clean, low emission synthetic diesel fuel, gasoline or hydrogen, according to the company.

Through the agreement, Advantage will process gas through its own system. The liquids will then be marketed from the plant by Advantage.

“Advantage is pleased to utilize our unique set of tools to provide a value and net-back-driven service to SandRidge Energy’s assets in the North Park Basin of Colorado,” said John Stephenson, CEO. “We look forward to developing a strong partnership over the course of the agreement.”

In addition to the Niobrara, Advantage Midstream is also working on agreements in the Permian, Bakken, Mid-Continent and other areas that have stranded or constrained natural gas production.

The system developed by Advantage is skid mounted and delivered by truck. Concrete foundations are not required and each unit has an automated control system. According to the company, the systems are designed for producers desiring to reduce energy waste and environmental impact while monetizing stranded/flare gas volumes.